In two years' time trucks will have to pay 15
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a day for the privilege of entering London. And that's the good news—it was going to be 115 until the industry objected. Mike Sherrington reports on the congestion charges that will soon be sweeping Britain's cities.
ayor Ken Livingstone's move to introduce congestion charging into Central London by the end of 2002 has sparked nearly as much outrage among members of the road haulage industry as the hated fuel price escalator. This is despite the fact that he has akcady made a major concession to the industry by drop ping the proposed charge from £15 a day to Ls.
The campaign against imposing congestion charging on commercial vehicles has been led by the Freight Transport Association and the Road Haulage Association with considerable support from the Confederation of British Industry.
The pressure mounted by these groups has been intense—so intense that Derek Turner, who is responsible for all London's main roads as director of the street management division of Transport for London, says: "Our original plan to ask commercial vehicles to pay 115 a day has been by far the most contentious of all our congestion charging proposals. We have listened to what has been said and acted accordingly."
Concession
However, this concession could well be the last, because a recent MORI poll commissioned by the Greater
London Authority shows that seven times more busi nesses, transport user groups and London boroughs sup port congestion charging than are opposed to it.
Despite these findings the PTA is pressing ahead with a campaign to make sure that commercial vehicles are exempt from the levy.
FTA London policy adviser Sue Moody says: "The reduction from II 5 to .15 is a step in the right direction but what we are left with is still a stealth tax on business. We estimate that it could cost between /r,300 to 14,000 a year for an HGV which makes regular trips into the centre, and this cost will eventually be reflected in higher retail prices for all Londoners."
Chrys Rampley, the RHA's manager for infrastructure, has been in discussions with the GI.A over the charge. She also condemns the new charge as a stealth tax: "Already some companies are refusing to deliver in London because of the London Lorry Ban and the fact that they cannot park there. They take their goods to a point outside the capital where they are picked up by the client. Congestion charging will only make things worse because clients will use smaller vehicles making more trips and will be charged 15 a day. The effect of this will make goods more expensive."
"The reductim from 115 to 1!
is a step in the right directior but what we al left with is stil a stealth tax o business."
Sue Moody
Commercial
Neither group is opposed to private vehicles being charged to enter Central London. They argue that the private motorist has the choice using public transport: a choice denied to the commercial operator. who has to deliver goods where they are required. D Among operators with no choice is Wandsworth-based Young's Brewery, which runs a fleet of zo drays. Transport and distribution manager Bob Bull says: "We have delivered into Central London for more than too years and do not intend to move our pubs. I have estimated that congestion charging could add up to f.6o,000 to the cost of our operations and all this will have to come off our bottom line as the licensed trade market is so competitive that we cannot afford to increase the price of a pint. Ken Livingstone says that the charge will reduce congestion, but once he has failed in doing this will he take it off again?"
Considering
Bull has considered switching to early morning deliveries to avoid the congestion charge, but this plan was scuppered by the London Lorry Ban which prohibits HGV movement from 2T .00-0 9.00hrs Although Bull says the cost will not be passed on to Young's customers, other hauliers say they will have no choice. Dick Flute, owner of OLG Inter UK Freight Service, which specialises in distribution for conferences and exhibitions, says: "Rates are so low at the moment that most firms will have to pass on the costs because there is no slack that can be taken up."
And lain Mays, managing director of Harley Road Services, explains: "On a clear road a 38-ton ner can manage about tompg of diesel—when the road is congested this falls to about nripg, so on the face of it congestion charging appeals.
However, I still believe that the tax being imposed by cuddly Ken is no more than a stealth tax. It will not affect congestion—but it will make goods more expensi+,e A number of major-league operators which could be dramatically affected by the charge, including Securicor Omega Logistics and Parcel force Worldwide, are waiting to see what will be imposed before commenting. But there is growing disquiet among firms which work in the retail sector.
A spokeswoman for Wincanton Logistics says: "We would applaud the tax if it reduces congestion, but only if the haulage industry was exempt from paying it."
"We would also like to see a relaxation of the London Lorry Ban. All To of our London delivery lorries are powered by compressed natural
gas and are much quieter than conventional vehicles. However, far from being rewarded for being environmentally conscious, we still have 24 of our 46 London stores affected by the curfew. Being forced to make daytime deliveries, when the roads are more congested, means that our fuel bill is to% higher and our fleet t5% larger than need be."
Final proposals on congestion charging are expected next summer. Until then hauliers have time to plead a special case—but they have a long, hard fight ahead of them.